I have a family member who recently lost her husband to cancer. He didn't leave a will but had her put on the deed to their home before he passed. She is now a single mother of 4 with no work history, terrible credit and an $1800 mortgage. Fortunately social security for her children kicked in quick and she is able to afford the mortgage and living expenses however the family of her deceased husband took it upon themselves to file for the death certificate without her on it and send it off to the mortgage company. The mortgage company will no longer accept her payments.
Instead of dealing with the hassle she wants to sell the house since she's on the deed and move on. She has roughly 20% of equity in the home and it would be a lot more if the home didn't need repairs. If she sells in its current condition I'm estimating that she'll lose roughly 30k buy not being able to get the full value vs. keeping the house doing, some repairs and waiting to sell.
I know there has to be a way to make this work. I offered to cosign so that she could pull out money for repairs but she's leaning more towards selling now. I'd love to buy the place if she did sell but I just bought my first property and don't have much reserve for both projects.
What would you do? How would a seller finance be structured in a situation like this? Most importantly how can my cousin keep her home? Secondly how would we both win if she sold and I purchased?
I know there is a ton of options for her and myself if I get involved. So many options and ways of getting creative that its overwhelming.
Seller financing would be tricky since she has a mortgage.
I’m not an expert but this could be a lease option play. There’s not a lot of ways for you to both “win”, unless you pay her what it’s worth as is, spend money on repairs and then sell it again.